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Table of Contents

CALIFORNIA ....................................................................................................................................................................... 2

Tax Deed Certificate State ............................................................................................................................................ 2

1) The Foundation: ......................................................................................................................................................... 3

2) The Data: ....................................................................................................................................................................... 6

3) The Auction: ................................................................................................................................................................. 7 County Links .................................................................................................................................................................................... 7 Doing Online Research: ............................................................................................................................................................... 8

4) TECHNIQUES - IDEAS - CONCEPTS – FORMULAS.............................................................................................. 8 MONEY MAKING TECHNIQUE #1 .............................................................................................................................................. 9

So here is how it works: ............................................................................................................................................................................... 9 What if officials don’t cooperate with me? ........................................................................................................................................... 9 Letter 1: To Tax Delinquent Land Owner ........................................................................................................................................... 11

MONEY MAKING TECHNIQUE #2 ............................................................................................................................................ 14 MONEY MAKING TECHNIQUE #3 ............................................................................................................................................ 15

Here is how it works: .................................................................................................................................................................................. 15 CAPITAL GAINS & LOSSES DEDUCTIBLE ........................................................................................................................................... 16 CREATING A CAPITAL LOSS ..................................................................................................................................................................... 16 THOUSANDS DELIBERATELY NOT PAYING TAXES ....................................................................................................................... 18 CONSULT YOUR TAX ACCOUNTANT OR ATTORNEY .................................................................................................................... 18 Letter 2: Tax Delinquent Token Payment Letter ............................................................................................................................. 19

MONEY MAKING TECHNIQUE #4 ............................................................................................................................................ 20 MONEY MAKING TECHNIQUE #5 ............................................................................................................................................ 21 MONEY MAKING TECHNIQUE #6 ............................................................................................................................................ 23

How to Research the Board of Supervisor’s Sale Properties: .................................................................................................... 24 You now have a list of properties, maps, and assessment information. ................................................................................ 24 Ready to Visit Property List ..................................................................................................................................................................... 25

5) SAMPLE LETTERS FOR YOUR USE ...................................................................................................................... 26 Letter 3 – To County Tax Collector......................................................................................................................................... 27 Letter 4: Alternate Letter To Tax Delinquent Property Owner ................................................................................... 28 Letter 5: Informal letter............................................................................................................................................................. 29

6) STATUES RELATING TO PUBLIC RECORDS ACCESS ...................................................................................... 30 PUBLIC OFFICIALS DO NOT ALWAYS ABIDE BY PUBLIC RECORD LAWS .................................................................. 30

7) CALIFORNIA PUBLIC RECORDS STATUTES ..................................................................................................... 32

8) CALIFORNIA TAX DELIQUENT PROPERTIES STATUTES ............................................................................. 35

Disclaimer: Please be advised to have any and all documents provided to you in this program reviewed by an attorney for their validity and feasibility for use in any state. No guarantees of any form are being made by Get In Line – Stay In Line, LLC, Jack Bosch or any other DBA that these documents are valid in the state

intended by the user of this material.

For additional State-by-State Tax Guides please visit: www.TaxSaleGuides.com

"Copyright 2011 © Get in line – Stay in Line, LLC" - All rights Reserved www.JackBosch.com 2

CALIFORNIA

Tax Deed Certificate State Welcome to the CALIFORNIA Tax

Sale Investment Guide California has 58 counties and is

considered a “Tax Deed State”. Please note that in the beginning of this guide, I will be explaining the overall framework and traditional rules for Tax Deed Investing in California. And in the second part of this document, I will show you some really profitable ways on how you can approach investing in Tax Delinquent Property in California. This method is totally different way than any other that you may have ever seen. In fact, you will be able to make thousands of dollars per deal, in many cases.

Nevertheless, it is important to first understand the framework and rules that surround

Tax Deed Sales in this state so that you can have a solid foundation for some of the more advanced techniques that I will be laying out further on.

For your easy reference, you will find a listing of all of the applicable articles and laws

from the California Revenue and Taxation Code and the California Government Code at the end of this report.





1) The Foundation:

California has 58 counties:

Alameda Kings Placer Sierra

Alpine Lake Plumas Siskiyou

Amador Lassen Riverside Solano

Butte Los Angeles Sacramento Sonoma

Calaveras Madera San Benito Stanislaus

Colusa Marin San Bernardino Sutter

Contra Costa Mariposa San Diego Tehama

Del Norte Mendocino San Francisco Trinity

El Dorado Merced San Joaquin Tulare

Fresno Modoc San Luis Obispo Tuolumne

Glenn Mono San Mateo Ventura

Humboldt Monterey Santa Barbara Yolo

Imperial Napa Santa Clara Yuba

Inyo Nevada Santa Cruz

Kern Orange Shasta

Each of these counties has been given authority by the state to take some rather severe

measures in order to collect the property taxes that are owed them. The state government has approved two main ways of getting money, although only one is currently being used. The first method that the state may use is selling Tax Lien Certificates. In the California Revenue and Taxation Code, §4528 details how this works:

However, as I mentioned, no county in California has yet adopted this option. Keep paying attention to the news, however. When individual counties finally decide to approve this method, there will be several ways that investors will be able to take advantage of these

4528. (a) (1) The tax collector may sell tax certificates by any form of public or private sale, including, but not limited to, an auction, a negotiated sale, or a bulk sale.





Tax Certificate Sales at public auction. The most significant will be the right to earn interest on the money the investor paid. The standard interest rate on a Tax Certificate in California has been set at 18%, although each individual case may vary. This means that, for every year the owner does not pay his property taxes, you can make a profit with the interest of up to 18%! In California this can go on for up to three (3) years!

Let’s talk more about the primary method that counties in California use to get the property taxes owed them. When a home owner in California doesn’t pay his property taxes, the County where the property is located will generously wait up to five years for the homeowner to get his act together. After five years have passed (or three, in some exceptional cases) the County will then exercise its “power to sell” and hold a public Tax Deed Auction. This auction allows investors to help the count out. By making bids at the auction (the price of which is determined by the amount of back property taxes and a few nominal fees) the participants try to purchase the property directly from the county. This attracts many investors because the property is sold at a price far below its actual value. The county, in turn, gets the tax revenue it had been owed and can conduct business as usual. This whole arrangement is governed by California Revenue and Tax Code §3691, which says (in part):

So, now that you know the basics about tax delinquent property rules in California, let’s

jump into some more details. Although California laws are (naturally) somewhat different than those found in every other state’s constitution, there are some very notable similarities. These are especially seen when we look at the people staffing the governmental offices. The truth is that the counties (and the public officials running them) don’t always follow the law even though their oaths oblige them to do so.

Thankfully, this is not that much of a problem in California. Some other states, however,

really still operate in the “wild, wild west” mentality (where favors are given to friends, properties are miraculously removed off of the auction block just days before the auction-even though nobody paid the property taxes- and other things like that...).

3691. (a) (1) (A) Five years or more, or three years or more in the case of nonresidential commercial property, after the property has become tax defaulted, the tax collector shall have the power to sell and shall attempt to sell in accordance with Section 3692 all or any portion of tax-defaulted property that has not been redeemed, without regard to the boundaries of the parcels, as provided in this chapter, unless by other provisions of law the property is not subject to sale.





For reasons like that it’s a good idea to know what the

specific state governmental and taxation statutes and laws are when dealing with county employees. Even though it is not the most exciting of reading, going through the applicable articles and laws at the end of this report will arm you with the information that you need to be a successful real estate investor in California. For example, although the county officials are supposed to hold an auction every year in California (and most actually do) it is

not necessarily a given that they take all of the required steps when advertising the Tax Deed Auction. For example, according to §3351 and §2957 of the California Revenue and Taxation Code:):

With that in mind, it’s a good idea to write to the clerk of each Board of Supervisors for

the county you are looking at, quoting the above laws, and requesting that you be notified of the exact time, date, and place of such sales. Please also find a Sample Letter to the County Tax Collector in the addendum to this Tax Sale Investment Guide.

§3351. (a) Annually, on or before June 8, the tax collector shall publish a notice of impending default for failure to pay taxes on real property, except tax-defaulted property and possessory interests, the taxes, assessments, penalties, and costs on which will have not been fully paid by the close of business on June 30, or the next business day if June 30 falls on a Saturday, Sunday, or a legal holiday. §2957: Notice of the time and place of sale shall be given at least one week before the sale by publication in a newspaper in the county, or by posting in three public places. In the event that it is necessary to continue the sale to a later date, notice shall be given as provided above.





2) The Data:

Nowadays, most counties are publishing this data online on their own individual websites.

To help you in your search, the State of California website has posted the official links to all of the county websites and social networking sites at the following address:

http://www.ca.gov/About/Government/Local/Counties/index.html

Here, you can search county by county to find out when the next

public auction will be held, what the specific properties are that will be offered, and what the requirements you need to meet are in order to be eligible to bid. Thanks to advances in Information Technology, you don’t just get to see a list of properties, but you often also get access to the links for the associated Plat maps, the detailed Back Tax Records, Ownership information, and detailed property information (like zoning, address, assessed value, etc...). This information is commonly linked from where the delinquent properties are listed.

And as a side note: Whether you are a resident of California or not, you do have a right to demand that the

county employees abide by the law and dispose of tax forfeited property in accordance within that law. So, don’t be afraid of asking for that kind of information, even if the county doesn’t automatically provide it. It is your RIGHT to have access to that data.

http://www.ca.gov/About/Government/Local/Counties/index.html





3) The Auction:

Most counties in California require that you be present

in person at the auction. There are several steps involved in registration, and the majority of these can currently only be done in person. However, there are some exceptions to the rule. For example, some counties have begun to conduct their auctions online. You can see lists by county of any properties for sale by looking at websites like www.Bid4Assets.com. Such counties, by using a third party to conduct the auction, make the task easier for the investor. Be sure to check out the county’s website, or

simply write for more detailed information. Also, note that each county has different rules on:

The security deposit. Often, the county will require a refundable deposit to be made when arriving at the public auction (they don’t want a bunch of “tire kickers” bidding and then not following through). For that reason, investigate to find out how much to bring.

Deadline. By when that deposit needs to be received

How that deposit needs to be sent. Some only accept wire transfers, some only accept cash, some only accept mailed money orders and checks, and some require that you show up personally to bring the payment in one of the above forms.

Make sure you know these and follow these. You don’t want to have a nasty surprise like I

did once. I had done all of my research on the properties and identified the ones I wanted to bid on. But then I missed the deadline to send in my deposit. As a result, I was not allowed to bid. I not only missed out on some great opportunities but I had also wasted all that time doing the necessary research.

County Links

The simplest way in California to find all of the dates and procedures for an auction is to

go to the respective County Treasurer/Tax Collector’s website, which can be found at the previously mentioned state website.

http://www.bid4assets.com/





Doing Online Research:

For those same counties (most of them) you can do the vast

majority of property research online, right from the comfort of your home. You can check for warning signs like liens (you don’t want any to be on the property). The nasty ones, like IRS Liens and Assessments, don’t go away after the property is foreclosed on. You can also check for mortgages (which change how you invest in the property) and any other research you want to do.

As an added bonus of technology, you can often get high

resolution aerial pictures of the property. This is particularly useful when you are looking at purchasing tax deeds on land only vs. tax deeds on land with houses. However, even when focusing on houses, you can still also get access to features like “Google Street View” and see the actual property right from the curb. The bottom line is, wherever you might be (even if it’s thousands of miles away) you can still investigate the land you are thinking about bidding on. With all of these tools, you can drastically limit your in-person research trips, and can get most of the information you need home, work, or anywhere where you have access to a computer and the internet.

4) TECHNIQUES - IDEAS - CONCEPTS – FORMULAS

Now let’s cut to the chase and let’s start talking about some methods, techniques, ideas

and concepts which allow you to make money in California. As we do, keep in mind the following concepts and terminology:





MONEY MAKING TECHNIQUE #1

Objective: Buying the tax delinquent property directly from the owners

In this technique, you will start with the properties that

are most likely to go into tax foreclosure. Why? Because those are, by definition, the properties that the owners simply don’t want anymore. In fact, their lack of desire to be the owners of this particular piece of property is so strong that they have stopped paying their property taxes and now are willing to let their ownership revert to the state. Personally, this is the technique that I like most, and, since 2002, is the one which I have used to do about 90% of my roughly 3,100 Real Estate deals.

So here is how it works:

After you have selected all of the properties which fall in your desired value range (of about $5,000 to $100,000 or $150,000) you will make a list of all of the delinquent property that you are interested in. Next, gather their current ownership information. Many times, tax lists only come with the NAME of the property owner. Even if that’s the case, it is best to check the property records online. Why? Nowadays, the records on the county often link right to the individual ownership listings, on another page of the county’s website. This will give you more contact info for the owner.

What if officials don’t cooperate with me?

Although all records (including records on property ownership) are, by law, a matter of

public record, that doesn’t automatically mean that the county makes them easily accessible to you. Now, the counties in California are among the most advanced in terms of giving information online, but there are still some counties that are stuck in the early 20th century and have very little nothing posted to their websites. In those rare cases, you will have to actually take a trip down to the county offices (or hire someone to do it for you through

Disclaimer: Please be advised to have any and all documents provided to you in this program reviewed by an attorney for their validity and feasibility for use in any

state. No guarantees of any form are being made by Get In Line – Stay In Line, LLC, Jack Bosch or any other DBA that these documents are valid in the state



"Copyright 2011 © Get in line – Stay in Line, LLC" - All rights Reserved www.JackBosch.com

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www.ELance.com or perhaps www.Craigslist.com) to get the property ownership information for all the properties you are interested in one by one. Even if you have to invest a little money, it will be a small price to pay to make a fortune in tax delinquent property investing.

County official often have a unique interpretation of the law, wherein they only give you

ACCESS (online or in person) to all the records, but they do not feel obliged to collect or extract the data in an aggregate for you. On occasion, they basically say: “it is all available, go check it out, but we won’t create a custom data extract for you or send it to you.” If that is the case, then you really have two choices:

You can contact the county’s Information Technology department and ask them for help. They often understand how easy it is to get that data of property ID, back tax amount, owner name, owner mailing address, assessed value, etc. In addition, they can help you to relay this message to the county officials who might just be blocking your request because they think it is a lot of extra work.

Or, you can just give in and gather the information you need piece by piece. While more effort, it is WORTH IT!!!

But, continuing in the steps... With the contact information of the tax delinquent property owner in hand, we will now

compose and mail a letter to them (see the sample letter below) stating that their property is delinquent for non-payment of taxes (which they already know) and to inquire as to whether they have any intention of redeeming (paying the taxes they owe before the cutoff date). In your letter, include a sentence stating that if there is no intention of redeeming, you will purchase their property for some cash.

http://www.elance.com/

http://www.craigslist.com/






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Letter 1: To Tax Delinquent Land Owner

Your Name Your Address Your City, State, Zip DATE Property Owner Name Property Owner Address Property Owner City, State, Zip Re: Your Property in (PROPERTY COUNTY, STATE) Dear _________: When I checked the public records in _____________ (name of County) County, CA, the above property appeared to be delinquent for non-payment of taxes, and ownership of it will be sold through public auction. In the event you do not intend to redeem it, and are interested in selling your property (below market value) in exchange for some cash, please call me at (YOUR PHONE NUMBER) or email me at (YOUR EMAIL ADDRESS) to discuss the property and a possible sale. If you have no interest in selling your property and relieving yourself of the burden of property ownership in exchange for some cash, or if you have already redeemed your property and have no interest in a sale, please disregard this letter. Sincerely, Xxxxxx Xxxxxxx






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As you see in this letter, you are not really telling the seller what you are offering. You do that once they have contacted you back and have given you more information about the property. Even then, I like to make that offer in writing. Once you have all of the information that the seller can give you, either:

Send them an offer in the mail

Make an offer on the phone.

In either case, it will be an offer for only a token payment of a few dollars, a few hundred dollars, or (in the case of a really valuable property) for a few thousand dollars. Offer them a price equal to the tax amount plus a little extra. Make it a price that will be that will be worth their effort, but that is still very low. For example, offer back taxes plus $100 or $500 or (in case of a more valuable property) it could go as high as a few thousand dollars. This will make sense to them because not only do they get rid of a lingering overdue tax amount, but they will also walk away with a few dollars in their pocket. They can use this money to move, to go shopping, or to put down on another home or piece of real estate.

Now, when you send out these letters, you want to make sure that you keep three (3) very important files, and label them as you see below:

List of all responses stating they will redeem by paying their taxes to the county; (there are usually just a few who will even bother to answer if they are planning to redeem).

List of all who respond positively to you (obviously these are your main target now).

List of all un-deliverable mail (you will want to keep these nearby).

The second list (which is obviously the ones who you might do a deal with right away) is for this technique the most important one. However, once you read on, you will see that the pile of undeliverable mail is also a HUGE gold mine for you. It can make you money in a way that you probably have not thought about.

But let’s continue with the letters in the second file list right now.

Once you have some people who have responded to you, you can either call them back and ask them some questions about the property like “what is the






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terrain, does it have utilities, is it buildable, what do they want for the property...” or, if you already checked out the property online on the county websites and ran comps, (comparable sales so you have an idea of the exact value) you can just send them an offer.

And once they accept you either:

Immediately find someone else to sell the property to and do a double escrow closing (where you buy and sell the property in a single day)

You immediately find someone else who wants to purchase the property and you just ASSIGN the Sale Agreement (your offer) to that buyer for a fee!

You close on the transaction and then you flip it to someone else

You let the government sell it for you (METHOD 4)

Or, if the property is a true gem, you close on the transaction and keep it for yourself. However, in this case, don’t forget to pay off the property taxes. Otherwise, someone else will purchase the tax deed at auction and foreclose on YOU!

Now, I think that by now, you are getting as excited about this process as I am. That’s why it’s so important for you to have this super detailed step-by-step system walk-through and hand-holding guidance on how to carry out every tiny little aspect of this investment technique, from how to talk to the seller on the phone to how to make sure your offers get accepted. Remember, you can go to www.LandProfitGenerator.com anytime and learn more about it there.

Of course, this is only half the game here. Another even more powerful idea is to GO FURTHER THAN OTHERS WILL. I once heard somebody say something along the lines of:

“If you are willing to do NOW what others are unwilling to do, then you will for a LIFETIME be able to do (and afford) what others can’t.”

I remembered that. And you should too. That leads us to…

http://www.landprofitgenerator.com/






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MONEY MAKING TECHNIQUE #2 Objective: Find the people that even the government doesn’t bother to try to find

So what can you do that goes further than others? Think back to that file full of envelopes that we mentioned, remember, the ones that were returned “undeliverable”? You can find the NEW address of these property owners that nobody else can get a hold of. The way you do that is called "skip tracing”! Skip tracing is easy in the US because of the very lax privacy rules. All you need to do is create an account with a service like www.Merlindata.com or www.LexisNexis.com.

These are readily accessible and for-profit companies which, for a fee (between $1 and $5

per search, but most simple person searches are at about $1/search) allow you to put in the name and OLD address of the person you are looking for. With a click of a mouse, the NEW address appears. Sometimes, it requires a little digging (like in the case where an owner of the property has perhaps passed away). In that case, you will want to see who else has lived at that address (it’s all right there on the first search result when you initially searched for the person) and then you just follow the links to the children and soon enough, you can find their address.

Once you have found a new, updated address of the property owner (or of their children), you just send them the same letter as mentioned in Method #1 (because they haven’t received it yet) and apply the steps of Technique #1 with them too. You will have an untouched market, and will probably be the first person to give them a way out of their stressful situation.

http://www.merlindata.com/

http://www.lexisnexis.com/






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MONEY MAKING TECHNIQUE #3 Objective: Inform the owner about a possible tax deduction for their property if they sell cheaply to you

Here is a "special technique" to use if you see a lot of properties with a lot of back taxes accrued in your county of choice. This technique works for all kinds of properties, but I have found it works best when the owner of the property either:

Can’t afford to pay the property taxes anymore, and several years of property taxes have already accrued

Really doesn’t want the property anymore but still wants to make some decent money from the sale

Applying this technique requires a little more financial knowledge from both the seller as

well as from you (not too much, though).

Here is how it works:

Again the steps are fairly similar to the previous letter-writing techniques in that you get a

list of people whose properties are delinquent for non-payment of property taxes and write them a letter. Your first step will again be to obtain a list of all of the records of property owners where the county is planning to auction off their land. These are obtainable in the Tax Collector or County Treasurer offices, and are ALL public records. You can usually obtain very recent and accurate information via their websites too.

However, in this case, what you want to do is offer the seller a true “token” payment of only $50 to $100 in exchange for the property, while at the same time explaining to him that he can also get MUCH more money by claiming a tax deductible lOSS to the IRS in his annual tax returns.






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Your next move is to write each of the delinquent property owners a letter similar to the one at the end of this technique. But how can the seller make extra money in addition to what you offer them? Well, as always, knowledge is power.

CAPITAL GAINS & LOSSES DEDUCTIBLE

Naturally, everyone knows that capital gains are taxable. But have you ever considered

taking a capital loss, long or short term, in order to obtain a tax deduction? And, have you ever considered the fact that you may have it in your power to "create" that capital loss? The bottom line is that there are tax rules in the US which allow you to write off losses from investments against gains in other areas of your financial life. Let me explain.

CREATING A CAPITAL LOSS

To many it might sound strange that you "create" a capital loss and pay LESS IN TAXES

because you exercised your power to create that loss? But it is just another example showing that the tax code was built by the rich for the rich, to help them pay less taxes WHEN they made money (via low capital gains taxes) and buffer their losses by allowing them to write of losses against their income tax returns.

Consider an example: if someone purchased a residential lot, some small acreage, or even a house as an investment a number of years ago, and if the real estate they purchased no longer holds the same promise for the owner as when he originally purchased it, if it has decreased in value, if the taxes or maintenance fees are unbearable, or if, for any other reason he is no longer interested in the property, the owner of the property can "create" a capital loss by selling it for a token payment. All he needs to do is capture and remember what you paid for it (and ideally have some proof) when he bought it and then capture what he sold it for (to you). And if he sold it for less than he bought it for, and effectively lost money, that LOSS can be, in simplified terms, written off against gains from other investments or just against regular income (to a lesser degree).

So, if someone purchased a lot in some highly promoted subdivision for $20,000 a few years ago and if he then sells that lot now for a token payment of $250.00 to you (as an example) that loss the seller absorbs would amount to $19,750.00.






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Now, here are the rules as I understand them (again this is not legal or tax advice). According to the IRS, anyone can write off up to $3,000 of capital losses per year (meaning losses from investments) against their ordinary income (meaning your salary from your J-O-B), and you can even write off ALL your capital losses against capital gains in one year. So for example, as illustrated above, if someone just happened to have this above mentioned lot that he bought for $20,000 and sold to YOU for $250, he has realized a loss of $19,750. If that person has a job and has NO money in the stock market, and no other income, he now can write off $3,000 PER YEAR against his regular income.

Now let’s assume that person is in the 30% tax bracket, he basically declares a $3,000 loss against his regular 1040 income and ends up paying taxes on $3,000 less per year. In other words, the government sends him a refund check for 30% of $3,000, which is $900. And now he does this again and again and again until the full $19,750 is written off. Over the next 7 years he will therefore get from the government additional refund checks for a total amount of $5,925. The total amount he received for the property over the next 7 years therefore was:

$250 from YOU in year 1

$5,925 from the IRS ($900 per year for 6 years and $525 in the last year)

For a total of $6,175!!!!

Now it doesn’t end there. If that person (the former property owner) who realized that loss of $19,750 is an investor himself and made an extra $19,750 (coincidentally) on another investment or in the stock market... in that same calendar year, then he can write off the ENTIRE $19,750 (and really there is no limit-this is just an example) against gains he made. As a result he would receive the same $6,175 but ALL in the FIRST YEAR! So this is a GREAT way to explain to the seller that he will be paid MUCH more than you could ever offer for this property by accepting your token payment!

Do you now see how, if you explain this properly to a somewhat financially savvy seller, you can get him to accept your super low offer? It’s a no brainer, because who knows? In this case the property value might have gone down so much that the property might not even be

Disclaimer: I am not a CPA and I am no giving legal or tax advice. I do have 2 MBAs, though, and I do understand financial items quite well. That said, make sure that you check with your personal CPA on the accuracy of what I am telling you.






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worth more than a few thousand dollars? The only pre-requisite is that the seller is capable of understanding this.

THOUSANDS DELIBERATELY NOT PAYING TAXES

Tens of thousands of individuals who purchased

property from some highly advertised and overly promoted real estate development years ago are finding they are not happy with their investment. Many of these people are "deliberately" not paying the taxes on the property for one reason or another and the property is being sold for non-payment of taxes resulting in a complete loss to the investor, in most cases. By explaining this Tax Deduction rule to one of these unfortunate individuals, you may be able to help them turn part of their loss into cash by selling their property to you for a token payment. This creates a capital loss and may result in substantial tax savings to them, while absolutely

limiting the Cash outlay to you. To the seller, isn’t this much better than taking a complete loss? You are effectively making the government your partner in compensating the seller for their property

ISN'T THAT GREAT!

CONSULT YOUR TAX ACCOUNTANT OR ATTORNEY

As mentioned above, you should definitely consult your tax accountant or attorney to determine the exact benefits in your particular case. The rules, regulations, and laws can change any time (although they have been in place for decades) and it takes a professional to keep abreast of the changes that affect you.






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Letter 2: Tax Delinquent Token Payment Letter

YOUR NAME YOUR ADDRESS CITY, STATE ZIP PHONE YOUR EMAIL ADDRESS OWNER NAME ADDRESS CITY, STATE ZIP CODE DATE RE: Your County, (STATE) Property. Property ID NO: ______________ Dear Sir or Madam: I recently checked the public records for some properties in your County and the above described real property appeared to be delinquent for non-payment of taxes. PLEASE IGNORE THIS LETTER if this information is outdated and you have already paid the taxes AND/OR if you are not interested in selling your property. If you however, are interested in selling your property (even if you have not paid the property taxes) you might be able to profit by giving me a deed to the property for a small consideration. You might not know this, but by doing this you could potentially “create” a tax deductible loss. By giving me the property for a small consideration and transferring the property over to me, you should be able to document what you received when you sold it to me. If you paid more for it than when originally purchasing it, U.S. TAX LAW allows you to claim the difference as a tax deductible loss (up to $3000 per year). If you are interested in such an arrangement please call me at (YOUR PHONE NUMBER) or email me at (YOUR EMAIL ADDRESS) to discuss the detailed arrangements. Of course I will assume the responsibility for all past due and currently due property taxes upon receipt of the properly completed deed. Again, if you have paid the taxes or if you DO NOT have an interest in this offer, please DISCARD THIS LETTER. Sincerely, Xxxx xxxxx






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MONEY MAKING TECHNIQUE #4 Objective: Flip the property without paying taxes.

Many people go ahead and pay the taxes right away on the property that they buy. What’s more, in many cases the title company makes it look like you HAVE to pay the back taxes when you purchase a property. But that is not actually the case.

If you are short of funds, but still want to do a deal with a

property that owes a lot of back taxes (perhaps more than you can afford to pay off right now), then just ask the title company to give you an exemption for non-payment of property taxes. Such an exemption means that you get to buy the property for only what you give the seller (which, like in the techniques above, could be just $100). Then, you go on to ASSUME the back taxes, but will not actually pay them at that moment.

Most title companies will look at you a little strangely if you

ask them for such an exemption, but be insistent. Eventually, they will agree that this is possible and will allow you to do so. Basically, with that exemption, you are now insured for all the things a title company insures you (with the exception of damages caused by losing the property to tax foreclosure). Since that coverage was exempt from the policy, the title company would not be liable if that happens.

So in this “side technique” you can save a LOT of money by buying the property outright

from the owner as described in the above techniques and NOT pay the property taxes. When you are ready to flip the property, t you sell it “subject to” the outstanding back taxes, meaning that whoever buys it from you also assumes the back taxes or simply pays them off. The advantage of this technique is that you never had to pay any taxes, and therefore less money comes out of your pocket.






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MONEY MAKING TECHNIQUE #5 Objective: Let the government sell your tax delinquent property for you.

A property can still make us some money, even though it owes taxes. As we have seen, we have several options once we buy a tax delinquent property before the auction. One of them is simply to pay off the taxes and then flip it to another buyer, flip it without paying off the taxes, or we can let it go to auction. The first and second options are great for some areas, but it can take some time to find the right buyer for our new land. That’s why the third option is a great secret way of making money. Why? Well, when we become the owner of a tax delinquent property, the property will go to auction as it was originally scheduled to do. Our new property will be sold to the highest bidder, the county will get its taxes, and everyone is happy. What about us? Did we just lose our investment? Not at all. The secret lies in §4675 of the California Revenue and Taxation Code:

This section talks about “excess proceeds.” What does that mean? Well, as we mentioned, the state sets a base price when auctioning off tax delinquent land. The base price consists of the taxes owed and a few minimal fees and costs that are associated with the transaction. When the highest bidder purchases the property, any money over and beyond the base price is referred to as “excess proceeds”. As the most recent owner of the land, you are entitled to that money. All you have to do make a written claim to the county, following the instructions in part (b) of §4675:

§4675: (a) Any party of interest in the property may file with the county a claim for the excess proceeds, in proportion to his or her interest held with others of equal priority in the property at the time of sale, at any time prior to the expiration of one year following the recordation of the tax collector's deed to the purchaser.

§4675 (b): After the property has been sold, a party of interest in the property at the time of the sale may assign his or her right to claim the excess proceeds only by a dated, written instrument that explicitly states that the right to claim the excess proceeds is being assigned, and only after each party to the proposed assignment has disclosed to each other party to the proposed assignment all facts of which he or she






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Do you see what just happened? By contacting the owner directly, you have just taken

advantage of a little-known section of California law wherein the state sells your land for you and then gives you the proceeds! This option is half the work and twice the fun!

is aware relating to the value of the right that is being assigned. Any attempted assignment that does not comply with these requirements shall have no effect. This paragraph shall apply only with respect to assignments on or after the effective date of this paragraph.






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MONEY MAKING TECHNIQUE #6 Objective: Acquiring property by bidding on it at a tax deed auction

As previously mentioned, California is a tax deed state (meaning that deeds to properties are sold at auction to collect back taxes). That being the case, there is always the possibility of simply purchasing properties directly from the county at auction. This is done via a tax deed property sale held by each individual county. Basically, the county is saying: ‘I want my money, we aren’t being paid!’ As a result, they foreclose on the property and they put up a public auction once a year, where they sell these forfeited properties to the highest bidder.

This is a great opportunity because many people don’t even know that these auctions

exist. Or, they may think that the only properties up for auction are probably in various states of disrepair and have little investment potential. Thankfully, you know better than that. Before bidding, however, you need to do your research first on the condition of the property:

If land only: can it be built on? (Is it flooded, is it too steep, is it too rocky, does it have a huge wash going through it...?)

If a house: is it being lived in, what is its current value, what repairs does it require? This is a tricky one, because you are NOT allowed to go into the house unless the tenants or owners let you in. Going into the house without permission is trespassing, and in California, where the residents are very litigious, the situation could become very complicated, very quickly. In any case, you need to get some kind of picture of the quality, value, and specific issues with the property before you bid, because you don’t want to overbid or get stuck with a nasty surprise.






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How to Research the Board of Supervisor’s Sale Properties:

You have just obtained a list of real property which will be coming up at a tax land sale.

Perhaps you’re interested in properties within several different counties. You will need to locate the county website and organize your calendar for these important dates.

After you compile the list of properties you may want to bid on, organize them into

spreadsheets of each county since that is where the following information will be found most easily. Some questions you will want to research and find the answers to are:

What is the last sale date?

What was the amount of the last sale date?

What is the assessed value only of the land?

Have there been any improvements on the property since the last sale? If so what is there value?

What is the total assessed value with the land and improvements? Keep track of them both separately and combined.

To answer all the above questions you will need to go to each individual county assessor

website and enter either the property address or owner’s name. The county, in turn, will then give you the detailed assessment and property information that you will need for your research.

Does the county website have a grid map or photo of the property? Are there metes and

bounds descriptions? If so, obtain the plat map and mark them, and then save them for your records. Grid maps are either online at each county site or you may request one at the county office in person.

You now have a list of properties, maps, and assessment information.

In your spreadsheet go back and list the properties starting with your most interested

first. Take out your County map and physically mark each location with an “X”. Doing this may sound somewhat juvenile, but it helps to visually see where each property is and what it can offer within its location. With your new route map, you can save yourself many hours or travel time by not having to backtrack over the same area several times. Many of the properties will likely be in the same general location.






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Ready to Visit Property List

Now you’re ready to go and check out each property. Have a file with blank paper in each

for you to take notes when visiting each location. Be sure to note on the condition of the property, location, and approximate value. Is it occupied or unoccupied?

Here is where you determine the maximum amount you are willing to invest on this

property. Is it worth investing at all? Is it a good or bad deal by looking at the outside? These is the time to take a lot of notes, so bring plenty of paper or use a portable device like a laptop or an iPad. Taking photos is another great idea so that you can view them at any time and remind yourself which property you’re looking at, and to show to potential buyers.

Once you have completed this research, can attend the auction and bid with confidence

on the properties you want!

A word of caution: Do not share your research with others. You have put a lot of time and money into your research and you should keep it strictly to yourself.






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5) SAMPLE LETTERS FOR YOUR USE

On the following few pages I have composed

additional sample letters which have been proven to work in California and other states. When you begin to mention law citations and quotes from different statutes, people will take you more seriously and give you what you request. Of course there will be one or two people who challenge you and the law, but that is when you stick to your guns and file a complaint and/or civil action against them. Remind them that you are aware of how to contact the State of California Attorney General as

well. On the following pages are more sample letters which can be used as is or further

modified for use in the State of California:






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Letter 3 – To County Tax Collector

Your Name Your Address Your City, State, Zip Date County Tax Collector Name County Tax Collector Address City, State, Zip Re: Delinquent Tax Properties County Tax Collector: I am interested in obtaining a list of all properties currently delinquent for non-payment of property taxes. This list is commonly also known as the “Delinquent Tax Roll.” Please advise whether or not you have such a list of all tax delinquent properties for non-payment of taxes readily available. This may be either via your website or a CD. Also, please let me know if there is there any charge for an electronic copy to be sent to me. If this is not available through your office, please let me know from whom it may be obtained with their direct contact information. This request is made pursuant to the public records statutes of the State of California §6253(a): “Public records are open to inspection at all times during the office hours of the state or local agency and every person has a right to inspect any public record.” Sincerely, Xxxxxx Xxxxx






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Letter 4: Alternate Letter To Tax Delinquent Property Owner

Your Name Your Address Your City, State, Zip Date Property Owner Name Property Owner Address Property Owner City, State, Zip Re: Your Property in (PROPERTY COUNTY, STATE) Dear __________, While doing research in the public records in COUNTY I noticed that your property is listed as delinquent for non-payment of property taxes and that it is close to being put up for a tax auction sale SOON! I am here to help you out and not to judge. I will get you money in your hands so that you can move on to a new home instead of losing everything you put into that home and your savings! Have you noticed that:

Real Estate prices are down?

Buyers are slow to come back to the market?

Banks are not lending? The truth is that buyers are actually spending money to buy properties like yours. I am one of those! I have cash and can close quickly. Why let the county win and take the house, leaving you and your family with NOTHING? Call me today at (YOUR PHONE NUMBER) and I will walk you through the steps, the process, and send the check, which will get you closer to your goal… Again, I can help relieve you of the burden of property ownership. Call me now. Sincerely, Xxxx Xxxxxxx






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***Here is another letter which is short, simple, and to the point below. It may not sound like the most professional approach but its direct and casual composure has proven over and over to work in this area.***

Letter 5: Informal letter

Date Hi! My name is Xxxxxx Xxxxxx and I am a local investor who wants to buy your property ASAP. I specialize in single residential homes and properties that are in a tax delinquent status such as yours located in _______ County. I have the CASH for your property NOW! If you’re thinking about selling property located in ________County, now is the BEST time to call me and discuss this very RARE opportunity! I have a limited amount of money to invest, and I am contacting several other California property owners also. Please call me at PHONE NUMBER to discuss the details of an offer. I am looking forward to speaking with you TODAY! Best Regards, XXXXXXXXX XXXXXXX Local California Investor






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6) STATUES RELATING TO PUBLIC RECORDS ACCESS

It is important that you understand the public record statutes in the jurisdiction where

you plan to do your research prior to attending a public auction tax sale or for the purpose of establishing a mailing list to contact delinquent property owners prior to or after a tax sale. The public records statutes in California are governed by §§6250-6276.48 of the California Government Code. This section of statutes is called the Public Records Act, and a great printout detailing what information is covered by which statute can be found at the following website:

http://www.thefirstamendment.org/publicrecordsact.pdf

Under these public records statutes, you have the following rights:

The right to inspect public records during normal business hours.

The right to make notes and memorandum of any public record.

The right to make photocopies of public records. When the public record is on a computer, public record statutes require the custodian of

such records to provide you copies of computer print-outs of such records at the actual costs of reproduction. Generally speaking, you do not have to personally go to the office where the public record is kept in order to obtain the information you need. Public officials are required to furnish you photo copies and you have the right to request them through the mail.

PUBLIC OFFICIALS DO NOT ALWAYS ABIDE BY PUBLIC RECORD LAWS

Strange as it might seem to you, not all public officials are aware of their duties or your

rights under the public records laws or if they are aware of the law they sometimes do everything possible to discourage you or even refuse you access to "their" public records. It is not always an easy matter to exercise your rights as evidenced by many court cases where the right to inspect such records have been denied to individuals and some companies. However, without exception, the courts have ruled in favor of the individual requesting the public record where the record is not exempt by statute. There is no statute in any state or

http://www.thefirstamendment.org/publicrecordsact.pdf






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in any jurisdiction of the United States that exempts delinquent property tax records or other records relating to the ownership of taxable real property.

Many state legislatures have enacted stiff penalties

for violation of their public record laws. Penalties range from a simple misdemeanor to a felony and/or removal from office. In any case, the individual denied timely access to public records can take his concerns to the courts and can sue for actual and punitive damages against any public official and against the bond of that public official.

It is clear that the public policy of the United States

and the various states is to permit easy access to public records and your right to copies at the actual costs of reproduction is guaranteed by statute.






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7) CALIFORNIA PUBLIC RECORDS STATUTES

6253. (a) Public records are open to inspection at all times during the office hours of the state or local agency and every person has a right to inspect any public record, except as hereafter provided. 6252. As used in this chapter: (a) "Local agency" includes a county; city, whether general law or chartered; city and county; school district; municipal corporation; district; political subdivision; or any board, commission or agency thereof; other local public agency; or entities that are legislative bodies of a local agency pursuant to subdivisions (c) and (d) of Section 54952. (b) "Member of the public" means any person, except a member, agent, officer, or employee of a federal, state, or local agency acting within the scope of his or her membership, agency, office, or employment. (c) "Person" includes any natural person, corporation, partnership, limited liability company, firm, or association. (d) "Public agency" means any state or local agency. (e) "Public records" includes any writing containing information relating to the conduct of the public's business prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics. "Public records" in the custody of, or maintained by, the Governor's office means any writing prepared on or after January 6, 1975. (f) "State agency" means every state office, officer, department, division, bureau, board, and commission or other state body or agency, except those agencies provided for in Article IV (except Section 20 thereof) or Article VI of the California Constitution. (g) "Writing" means any handwriting, typewriting, printing, photo stating, photographing, photocopying, transmitting by electronic mail or facsimile, and every other means of recording upon any tangible thing any form of communication or






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representation, including letters, words, pictures, sounds, or symbols, or combinations thereof, and any record thereby created, regardless of the manner in which the record has been stored. 6253.1. (a) When a member of the public requests to inspect a public record or obtain a copy of a public record, the public agency, in order to assist the member of the public make a focused and effective request that reasonably describes an identifiable record or records, shall do all of the following, to the extent reasonable under the circumstances: (1) Assist the member of the public to identify records and information that are responsive to the request or to the purpose of the request, if stated. (2) Describe the information technology and physical location in which the records exist. (3) Provide suggestions for overcoming any practical basis for denying access to the records or information sought. (b) The requirements of paragraph (1) of subdivision (a) shall be deemed to have been satisfied if the public agency is unable to identify the requested information after making a reasonable effort to elicit additional clarifying information from the requester that will help identify the record or records. (c) The requirements of subdivision (a) are in addition to any action required of a public agency by Section 6253. (d) This section shall not apply to a request for public records if any of the following applies: (1) The public agency makes available the requested records pursuant to Section 6253. (2) The public agency determines that the request should be denied and bases that determination solely on an exemption listed in Section 6254. (3) The public agency makes available an index of its records.






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6257.5. This chapter does not allow limitations on access to a public record based upon the purpose for which the record is being requested, if the record is otherwise subject to disclosure. 6258. Any person may institute proceedings for injunctive or declarative relief or writ of mandate in any court of competent jurisdiction to enforce his or her right to inspect or to receive a copy of any public record or class of public records under this chapter. The times for responsive pleadings and for hearings in these proceedings shall be set by the judge of the court with the object of securing a decision as to these matters at the earliest possible time. 6259. (a) Whenever it is made to appear by verified petition to the superior court of the county where the records or some part thereof are situated that certain public records are being improperly withheld from a member of the public, the court shall order the officer or person charged with withholding the records to disclose the public record or show cause why he or she should not do so. The court shall decide the case after examining the record in camera, if permitted by subdivision (b) of Section 915 of the Evidence Code, papers filed by the parties and any oral argument and additional evidence as the court may allow. (b) If the court finds that the public official's decision to refuse disclosure is not justified under Section 6254 or 6255, he or she shall order the public official to make the record public. If the judge determines that the public official was justified in refusing to make the record public, he or she shall return the item to the public official without disclosing its content with an order supporting the decision refusing disclosure. (c) In an action filed on or after January 1, 1991, an order of the court, either directing disclosure by a public official or supporting the decision of the public official refusing disclosure, is not a final judgment or order within the meaning of Section 904.1 of the Code of Civil Procedure from which an appeal may be taken, but shall be immediately reviewable by petition to the appellate court for the issuance of an extraordinary writ. Upon entry of any order pursuant to this section, a party shall, in






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order to obtain review of the order, file a petition within 20 days after service upon him or her of a written notice of entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow. If the notice is served by mail, the period within which to file the petition shall be increased by five days. A stay of an order or judgment shall not be granted unless the petitioning party demonstrates it will otherwise sustain irreparable damage and probable success on the merits. Any person who fails to obey the order of the court shall be cited to show cause why he or she is not in contempt of court. (d) The court shall award court costs and reasonable attorney fees to the plaintiff should the plaintiff prevail in litigation filed pursuant to this section. The costs and fees shall be paid by the public agency of which the public official is a member or employee and shall not become a personal liability of the public official. If the court finds that the plaintiff's case is clearly frivolous, it shall award court costs and reasonable attorney fees to the public agency. (b) Except with respect to public records exempt from disclosure by express provisions of law, each state or local agency, upon a request for a copy of records that reasonably describes an identifiable record or records, shall make the records promptly available to any person upon payment of fees covering direct costs of duplication, or a statutory fee if applicable. Upon request, an exact copy shall be provided unless impracticable to do so.






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8) CALIFORNIA TAX DELIQUENT PROPERTIES STATUTES

3361. Annually, on or before June 8th, the tax collector shall publish a notice of power and intent to sell all property that will be tax defaulted for one of the following: (a) Five years or more on the date specified. (b) Three or more years on the date specified in the case of residential real property that could serve the public benefit by providing housing or services directly related to low-income persons, for which a request has been made by a city, county, city and county, or nonprofit organization, pursuant to Section 3692.4, to offer that property at the next scheduled public auction. (c) Three years or more in the case of nonresidential commercial property, as defined in Section 3691, in an applicable county, on the date specified. 3362. The published notice shall show: (a) The date of the notice. (b) (1) That on July 1, five years or more will have elapsed since the property became tax defaulted; or (2) That, on July 1, three years or more in the case of nonresidential commercial property, as defined in Section 3691, in an applicable county will have elapsed since the property became tax defaulted; or (3) That, on July 1, in the case of real property that could serve the public benefit by providing housing or services directly related to low-income persons, three years or more have elapsed, and a request has been made by a city, county, city and county, or nonprofit organization, pursuant to Section 3692.4, to offer that property at the next scheduled public auction. (c) That, unless sooner redeemed or an installment plan of redemption is initiated, the property will be sold. (d) That the power to sell for nonpayment of taxes arises if the property remains tax defaulted at 12:01 a.m. on July 1. (e) That if the property is sold for nonpayment of taxes the right of redemption will






37

terminate. (f) The official who will furnish all information concerning redemption. (g) The fiscal year for which the defaulted taxes were levied. (h) A description of the property. The assessments contained in this notice shall be numbered in ascending numerical order. (i) The amount necessary to redeem the property as of the date specified in the publication opposite the description of the property. (j) The name of the assessee on the current roll. (k) The street address of the property, if any, shown on the county assessment records. 3351. (a) Annually, on or before June 8, the tax collector shall publish a notice of impending default for failure to pay taxes on real property, except tax-defaulted property and possessory interests, the taxes, assessments, penalties, and costs on which will have not been fully paid by the close of business on June 30, or the next business day if June 30 falls on a Saturday, Sunday, or a legal holiday. (b) If the tax collector sends reminder notices prior to the close of the fiscal year and annually sends a redemption notice of prior year due taxes, the notice required by subdivision (a) shall only include properties that have been tax-delinquent for three or more years and for which the latest reminder notice or redemption notice was returned to the tax collector as undeliverable. 3352. The notice shall be in the form of an affidavit and shall show: (a) That unless paid, the amount due shall be in default. (b) The time at which the default will occur by operation of law. (c) The fact that if tax defaulted, the real property may be redeemed by the payment






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of the amount of defaulted taxes together with such additional penalties and fees as prescribed by law, or that the real property may be redeemed under an installment plan of redemption. (d) The fact that tax-defaulted real property will be subsequently sold in satisfaction of the tax lien unless that property is redeemed or an installment plan of redemption is initiated and maintained. (e) The fact that a publication of a detailed listing of all real property which is tax defaulted will be initiated on or before September 8th, unless that property is sooner redeemed. 3353. Publication shall be made pursuant to Section 6063 of the Government Code in the county. If no newspaper of general circulation is published in the county, the publication shall be made by posting in three public places in the county. The cost of publication shall be at no more than the rate fixed by the board of supervisors for other county advertising. 3361. Annually, on or before June 8th, the tax collector shall publish a notice of power and intent to sell all property that will be tax defaulted for one of the following: (a) Five years or more on the date specified. (b) Three or more years on the date specified in the case of residential real property that could serve the public benefit by providing housing or services directly related to low-income persons, for which a request has been made by a city, county, city and county, or nonprofit organization, pursuant to Section 3692.4, to offer that property at the next scheduled public auction. (c) Three years or more in the case of nonresidential commercial property, as defined in Section 3691, in an applicable county, on the date specified.






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3362. The published notice shall show: (a) The date of the notice. (b) (1) That on July 1, five years or more will have elapsed since the property became tax defaulted; or (2) That, on July 1, three years or more in the case of nonresidential commercial property, as defined in Section 3691, in an applicable county will have elapsed since the property became tax defaulted; or (3) That, on July 1, in the case of real property that could serve the public benefit by providing housing or services directly related to low-income persons, three years or more have elapsed, and a request has been made by a city, county, city and county, or nonprofit organization, pursuant to Section 3692.4, to offer that property at the next scheduled public auction. (c) That, unless sooner redeemed or an installment plan of redemption is initiated, the property will be sold. (d) That the power to sell for nonpayment of taxes arises if the property remains tax defaulted at 12:01 a.m. on July 1. (e) That if the property is sold for nonpayment of taxes the right of redemption will terminate. (f) The official who will furnish all information concerning redemption. (g) The fiscal year for which the defaulted taxes were levied. (h) A description of the property. The assessments contained in this notice shall be numbered in ascending numerical order. (i) The amount necessary to redeem the property as of the date specified in the publication opposite the description of the property. (j) The name of the assessee on the current roll. (k) The street address of the property, if any, shown on the county assessment records.






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3363. Except as provided in Article 1.8 (commencing with Section 3381) of this chapter, the publication shall be made pursuant to Section 6063 of the Government Code in the county. If no newspaper of general circulation is published in the county, the publication shall be made by posting in three public places in the county. The cost of publication shall be at no more than the rate fixed by the board of supervisors for other county advertising. 3364. Immediately after the publication is completed, the tax collector shall file with the county recorder a copy of the publication and an attached affidavit. This affidavit is prima facie evidence of the facts stated. The affidavit shall show: (a) That it is affixed to a true copy of the publication. (b) The manner of publication. (c) If the publication was in a newspaper, its name and place of publication and the date of each appearance. (d) If not published in a newspaper, the places of posting. The county recorder may destroy such publications and affidavits that have been on file in his office for more than seven years. 3365. After the first publication of the notice and not less than 21 days nor more than 35 days before July 1, the tax collector shall send by registered mail to the last assessee of the tax-defaulted property at his or her last known address a notice of default and power to sell the property for nonpayment of taxes. The tax collector shall make a reasonable effort to ascertain the address of the last assessee of the tax-defaulted property, including, but not limited to, an examination of the assessment of this property on the rolls beginning with the year of delinquency to and including that of the last equalized roll, an examination of the most recent telephone books in the county in which the tax-defaulted property is located, and an examination of the telephone book covering the area of the last known address of the last assessee. Any failure of the tax collector to make a reasonable effort to ascertain the address of the last assessee as required by this section shall not affect the validity of any subsequent






41

sale to satisfy the lien of unpaid taxes. 3366. The mailed notice shall show the same information required for the published notice in Section 3362. A copy of the published notice may be mailed in lieu of a separate notice. 3371. (a) Annually, on or before September 8, the tax collector shall publish the affidavit that the real property on which the taxes, assessments, penalties, and costs had not been fully paid are in default, together with a list of all that real property. However, in any county that mails delinquent notices to the assessees of record before June 30, the tax collector shall publish the affidavit and list of all that real property on or before September 8 of the year following the date of default. (b) If the tax collector sends reminder notices prior to the close of the fiscal year and annually sends a redemption notice of prior year due taxes, the delinquent notice described in subdivision (a) may be published only for those properties that have been tax-delinquent for three or more years and for which the latest reminder notice or redemption notice was returned to the tax collector as undeliverable. 3372. The notice shall show: (a) The affidavit of tax default. (b) The fact that the real property may be redeemed by the payment of the amount of defaulted taxes together with those additional penalties and fees as prescribed by law, or that the real property may be redeemed under an installment plan of redemption. (c) The official who will furnish all information concerning redemption. (d) The following information relating to each assessment of tax-defaulted property: (1) The name of the assessee, and where there is more than one valuation the name






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of the assessee need be listed only once. For the purposes of this section, the name of the assessee may be the name of the assessee as shown on the current roll. (2) The description of the property. (3) The total amount necessary to redeem the property as of the date specified in the publication. This information required to be published is the "published delinquent list." If any tax-defaulted property is redeemed, the information relating to the property may be omitted from any publication. 3373. Except as provided in Article 1.8 (commencing with Section 3381), the publication shall be made pursuant to Section 6063 of the Government Code in the county. If no newspaper of general circulation is published in the county, the publication shall be made by posting in three public places in the county. The cost of publication shall be at no more than the rate fixed by the board of supervisors for other county advertising. 3374. Immediately after the publication is completed, the tax collector shall file with the county recorder a copy of the publication and an attached affidavit. This affidavit is prima facie evidence of the facts stated. The affidavit shall show: (a) That it is affixed to a true copy of the publication. (b) The manner of publication. (c) If the publication was in a newspaper, its name and place of publication and the date of each appearance. (d) If not published in a newspaper, the places of posting. The county recorder may destroy such publications and affidavits that have been on file in the recorder's office for more than seven years. 3375. The tax collector shall notify the Controller, in such manner as the Controller






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shall direct, of all property subject to a "Notice of Lien for Postponed Property Taxes" recorded pursuant to Section 16182 of the Government Code, which: (a) Becomes tax defaulted subsequent to the date of entry on the secured roll of the information required by paragraph (1) of subdivision (a) of Section 2514; or (b) Becomes subject to those collection procedures that are available for collection of delinquent taxes or assessments on the unsecured roll. 3381. In each county where the tax collector or, if the county is a chartered county, the board of supervisors determines that the public interest, convenience and necessity require the local publication of the delinquent list required by Section 3371, or the published notice of power and intent to sell required by Section 3361, in order to afford adequate notice, all items required to be published shall be published as provided in this article. After the determination, the tax collector or, if the county is a chartered county, the board of supervisors shall divide and distribute the items to be published and cause the same to be published either within (a) the municipal corporations, (b) the elementary, high school, or junior college districts, (c) the supervisorial districts, (d) judicial districts, (e) tax districts, areas included in map books, or tax code areas, or (f) by any annexation or annexations of same, or any combination of same, or any combination of those districts, annexations, areas included in map books, and code areas, within the county as they shall determine most likely to afford adequate notice to owners of the property. Except as provided in this article, the publication shall be in the same manner as provided in Article 1.7 (commencing with Section 3371). The publication provided for in this article shall be made once a week for two successive weeks in a newspaper or newspapers of general circulation. The publication shall be made in a newspaper published not less frequently than once a week. 3382. Annually, the board of supervisors shall let the contracts for publication of the published delinquent list, or the published notice of power and intent to sell, and shall determine the rate to be paid for those publications or any portions thereof.






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The publication rate shall be based on a common denominator of measurement for all newspapers and may be graduated according to circulation. 3383. The contracts for the publications shall include the publication of the proper portion of the published list and all other items relating to that portion of the published list required by law to be published. 3384. The board of supervisors may provide by order for mailing to each assessee on the published delinquent list a copy of the items delinquent assessed to him and, if so ordered, the copy shall be mailed to the assessee at his address as shown on the roll. This section gives no one any right to receive the copy of items delinquent, and neither the county nor any office or employee is liable for failure of the assessee to receive the copy or for any mistake in connection with the mailing. 3385. In ordering mailing of a copy of items delinquent, the board of supervisors may do either of the following: (a) Authorize the tax collector to perform the mailing. (b) Include, or authorize the inclusion of the mailing as an item in the contracts for publication of the published delinquent list. 3436. At 12:01 a.m. on July 1, the taxes, assessments, penalties, and costs on real property except tax-defaulted property and possessory interests, which have not been paid shall by operation of law be declared in default. 3437. The amount due on any property may be paid until the close of business on June 30 if it was separately valued on the secured roll. If June 30 falls on a Saturday, Sunday, or legal holiday, and payment is received by the close of business on the next business day, redemption penalties shall not attach. If the board of supervisors, by adoption of an ordinance or resolution, closes the county's offices for business prior to the time of delinquency on the "next business day" or for that whole day, that day






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installment plan for the previous year. The application forms shall be provided by the tax collector to those taxpayers requesting an application.

shall be considered a legal holiday for purposes of this section. Section 2512 shall apply to remittances made by mail. 3438. If the tax collector discovers before the declaration that because of any error the tax on a parcel of real property should not be declared in default, he or she shall not declare it in default and the board of supervisors shall cause the assessor to enter the uncollected taxes on the next roll, to be collected like other taxes on that roll. 3439. In appropriate columns on the delinquent roll, or the secured roll if the delinquent roll has been dispensed with, opposite each parcel separately valued the taxes on which have been declared in default, the tax collector shall enter "tax defaulted," the date of the declaration, and the total amount declared to be in default. 3441. Every person who does any act tending permanently to impair the value of tax-defaulted property is guilty of a misdemeanor and is liable for any damages sustained by the county or public agency because of his or her act. Those acts include, but are not limited to, the removal, destruction, or cutting of any improvements or timber. On request of the tax collector of the county where any part of the property is located, the district attorney of the same county shall: (a) Prosecute for the commission of the misdemeanor. (b) In the name of the people, sue for damages sustained by the county. 3442. Within 30 days after the declaration of default, the tax collector shall furnish the auditor with a list of all tax-defaulted property. The auditor shall enter on the current roll immediately after the description of the property the fact and date of declaration of default. 3443. The tax collector shall transmit the list of property to the assessor who shall enter on his or her records the fact and date of the declaration of default.






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3443.5. In lieu of the procedure specified in Section 3443, where a machine-prepared roll is used, the fact and date of the declaration of default may be entered upon the reproduced roll. 3444. If the original declaration of default by operation of law is ever canceled or held void, the property shall be treated for all purposes as if in default in the next subsequent year for which it would have been validly declared in default but for the previous declaration of default. 3451. The tax collector may, in his or her discretion, accept any method of payment authorized by Section 2502, 2503.2, or 2504 in payment for tax-defaulted property and tax-defaulted property sold at public auction. 3452. The acceptance of negotiable paper constitutes payment for tax-defaulted property and tax-defaulted property sold at public auction as of the date of acceptance when, but not before, the negotiable paper is duly paid. When negotiable paper is so accepted, the deed to the property so purchased shall not be delivered until that negotiable paper is duly paid. 3455. If any negotiable paper is not paid on due presentation for any reason, any record of payment made on any official record because of its acceptance shall be canceled, and the bid upon which the negotiable paper was accepted shall be voided as if no bid had been made, and the original owner's right of redemption is revived. 3456. (a) If any part of a bid that was accepted by the tax collector is not paid when






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due, the county shall have a claim against the bidder for the actual cost of the sale. Immediately upon becoming past due, the tax collector shall notify the bidder by certified mail, which notice shall include all of the following: (1) That his or her bid has been voided because of the delinquent payment. (2) The amount of the county's claim against the bidder. (3) That the amount of the claim will be deducted from any deposit submitted by the bidder and that any remaining amount of the deposit is forfeited. (b) If a bidder does not pay the claim arising under subdivision (a) within 30 days after the notice is sent, both of the following apply: (1) The county may utilize any means authorized by law to collect the claim, including, but not limited to, transferring the amount of the claim to the unsecured roll. (2) The tax collector may prohibit the bidder from bidding on sales made pursuant to this chapter for up to five years. 3771. As used in this chapter, "taxes" includes assessments. 3772. As used in this chapter, "taxing agency" includes a county treasurer acting as trustee for a reclamation district and the "governing body" of a taxing agency includes such a county treasurer acting with the consent of the board of trustees of the reclamation district. 3772.5. For purposes of this chapter: (a) "Low-income persons" means persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code (b) "Nonprofit organization" means a nonprofit organization incorporated pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code for the purpose of acquisition of either of the following: (1) Single-family or multifamily dwellings for rehabilitation and sale or rent to low-income persons, or for other use to serve low-income persons.






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(2) Vacant land for construction of residential dwellings and subsequent sale or rent to low-income persons, for other use to serve low-income persons, or for dedication of that vacant land to public use. (c) "Rehabilitation" means repairs and improvements to a substandard building, as defined in Section 17920.3 of the Health and Safety Code, necessary to make it a building that is not a substandard building. 3773. Whenever property becomes subject to a power of sale pursuant to Section 3691 for taxes, including taxes levied by a city or any taxing agency or for a revenue district the taxes of which are collected by county officers, the city or taxing agency or revenue district has all the rights under this chapter of a taxing agency to which property has been deeded for taxes. 3774. The State has all the rights under this chapter of a taxing agency to which property has been deeded for taxes. 3775. Whenever the county or the State is the purchaser the price shall be agreed upon between the county board of supervisors and the State Controller and the governing body of any city in which such property may be located and such price shall be paid to the county tax collector for distribution. 3776. Notwithstanding anything to the contrary, no parcel for which a tax certificate has been sold and not canceled shall be sold or deeded to any taxing agency unless the taxing agency deposits into the applicable tax certificate redemption fund, held by the tax collector, the total amount required to be paid to the holder of the tax certificate pursuant to Section 4527.






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3791. Whenever property tax defaulted for five years or more, or three years or more in the case of nonresidential commercial property, as defined in Section 3691, in an applicable county, has been sold for taxes for two or more years or has been deeded for taxes to a taxing agency other than the state, the governing body of the taxing agency may, as provided in this article, make an agreement with the board of supervisors of the county in which the property is situated for the purchase of, or for an option to purchase, all or any of the tax-defaulted property or any part thereof including a right-of-way or other easement. When a part of a tax-defaulted parcel is sold the balance continues subject to redemption, if the right of redemption has not been terminated, and shall be separately valued for the purpose of redemption in the manner provided by Chapter 2 (commencing with Section 4131) of Part 7 of this division, except that no application need be made. 3791.3. Whenever property has been tax defaulted for five years or more, or three years or more in the case of nonresidential commercial property, as defined in Section 3691, in an applicable county, whether or not the property is subject to or has been sold or deeded for taxes to a taxing agency other than the state, the state, county, any revenue district the taxes of which on the property are ollected by county officers, or a redevelopment agency created pursuant to the California Community Redevelopment Law, may purchase the property or any part thereof, including any right-of-way or other easement, pursuant to this chapter. A redevelopment agency, however, may only purchase this tax-defaulted property located within a designated survey area. 3791.4. (a) When residential or vacant property has been tax defaulted for five years or more, or three years or more after the property has become tax defaulted and is subject to a nuisance abatement lien, that property may, with the approval of the board of supervisors of the county in which it is located, be purchased pursuant to this chapter by a nonprofit organization, provided that: (1) In the case of residential property, the nonprofit organization shall rehabilitate and sell or rent to, or otherwise use the property to serve, low-income persons. (2) In the case of vacant property, the nonprofit organization shall construct






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residential dwellings on the property and sell or rent the property to low-income persons, otherwise use the property to serve low-income persons, or dedicate the vacant property to public use. (b) The terms and conditions of any conveyance to a nonprofit corporation pursuant to this section shall be specified in the deed or other instrument of conveyance. 3791.5. Any agreement under this chapter may include a provision for payment to the county treasurer while the property is in public ownership and rented, leased, or sold on contract by the taxing agency of an amount agreed upon by the board of supervisors and the taxing agency in lieu of taxes on such property. Any payment in lieu of taxes, required by an agreement under this chapter, shall be received by the county tax collector and shall be distributed among the county and revenue districts of the county in the same manner as provided for the distribution of taxes in Section 4656.2. 3792. If property tax defaulted for more than five years, or more than three years in the case of nonresidential commercial property, as defined in Section 3691, in an applicable county, has been sold for taxes for two or more years or has been deeded for taxes to two or more taxing agencies, they may make a joint agreement with the board of supervisors under this article. The joint agreement may provide for the conveyance of all or any interest in the property to one of them or to any combination of them. 3793. Any agreement under this article may: (a) Cover any tax-defaulted property without regard to the boundaries of the parcels which were assessed. (b) Provide for sale of various portions of the property at various prices and on various terms and for an option to purchase any remaining portion. 3793.1. (a) The sales price of any property sold under this article shall include, at a






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minimum, the amounts of all of the following: (1) All defaulted taxes and assessments, and all associated penalties and costs. (2) Redemption penalties and fees incurred through the month of the sale. (3) All costs of the sale. (b) If the property or property interests have been offered for sale under the provisions of Chapter 7 (commencing with Section 3691) at least once and no acceptable bids therefor have been received, the tax collector may, in his or her discretion and with the approval of the board of supervisors, offer that property or those interests at a minimum price that the tax collector deems appropriate. (c) The board of supervisors may permit a nonprofit organization to purchase property or property interests by way of installment payments. 3794. No option to purchase property under this article shall be given for longer than three years. 3794.3. A sale under this chapter shall take place only if approved by the board of supervisors. 3795. The agreement shall be submitted to the Controller. If he or she does not approve the agreement, he or she shall return the agreement to each party with a statement of his or her objections to it, and thereafter a new or modified agreement may be made. If the Controller approves the agreement, he or she shall sign the executed copy, return the signed agreement to the tax collector, and keep a copy on file in his or her office. 3795.5. In the case of an agreement involving a nonprofit organization, the board of supervisors may establish conditions of sale, including reporting, to assure the completion of rehabilitation within a reasonable time and maximum benefit to low-






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income persons. These conditions shall include, but are not limited to, the following: (a) Requiring compliance with a jurisdiction's consolidated plan or a community development plan. (b) Articles of incorporation filed with the Secretary of State, stating that the organization is incorporated for the purposes specified in subdivision (b) of Section 3772.5. 3796. By written authorization, the Controller shall then direct the county tax collector to cause notice of the agreement to be given. 3797. The notice of agreement shall state: (a) A description of the property substantially as described in the agreement. (b) The name of the last assessee of the property. To ascertain the name of the last assessee of the tax-defaulted property an examination shall be made of the assessment of this property on the last equalized roll, or if this property does not appear thereon, the last previous roll on which it was assessed. (c) That an agreement for the sale of the property or for an option to purchase it, or both, as the case may be, has been made by the board of supervisors of the county with the taxing agency or nonprofit organization named in the agreement and has been approved by the Controller. (d) That a copy of the agreement is on file in the office of the board of supervisors. (e) If the right to redeem the property has not already been terminated, there shall also be a statement that unless the property is redeemed before the agreement becomes effective, the right of redemption will cease. (f) The date and time that the agreement will become effective.






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(g) That parties of interest, as defined in Section 4675, have the right to file a claim with the county for any proceeds received by the tax collector under the agreement which are in excess of the liens and costs required to be paid from the proceeds. (h) If excess proceeds result from the agreement, notice will be given to parties of interest pursuant to law. 3798. The notice of agreement shall be published once a week for three successive weeks in a newspaper of general circulation published in the county, or, if none, then by posting copies of the notice in three public places in the county. 3798.1. If in the judgment of the board of supervisors any property to be sold under this chapter would bring at auction less than the cost of publication in a newspaper, the publication may be made in the same manner as if there were no newspaper published in the county. 3799. The tax collector shall mail a copy of the notice not less than 45 nor more than 60 days prior to the effective date of the agreement, by registered mail to the last assessee of each portion of the property and to parties of interest, as defined in Section 4675, at their last known address. To ascertain the address of the last assessee of the property an examination shall be made of the assessment of this property on the rolls beginning with the year of delinquency to and including that of the last equalized roll. The tax collector shall make reasonable efforts to ascertain the identity and address of parties of interest. It is not necessary to mail a copy of the notice to any party who files with the tax collector a written acknowledgment of receipt of a copy of the notice or a waiver of the notice. The validity of any sale under this chapter shall not be affected if the tax collector's reasonable effort fails to disclose the name and last known mailing address of parties of interest or if a party of interest does not receive mailed notice.






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3800. The cost of giving the notice of agreement shall be paid by the taxing agency or nonprofit organization by which the property is to be or may be purchased. 3801. An affidavit showing that the notice of agreement has been given as prescribed shall be filed in the office of the county tax collector. 3802. The agreement shall become effective no sooner than 5:01 p.m. on the 21st day after the first publication of the notice of agreement. 3803. If not previously terminated, all rights to redeem the property shall terminate on the date and at the time the agreement becomes effective. If all or any portion of the property is redeemed before the agreement becomes effective, the agreement is null as to the property redeemed. 3804. (a) If any portion of the property is not so redeemed, the tax collector shall, without charge, execute to the purchaser a deed of the property as to which either: (1) The agreement provides that no payment is to be made by the purchaser, or (2) There has been paid the purchase price in compliance with the terms of the agreement. (b) The tax collector shall promptly deliver the deed described in subdivision (a) to the county recorder for recordation and shall send a conformed copy of that deed to the Controller. The recorder shall record the deed and prepare necessary conformed copies without charge.

3804.2. If a deed to the purchaser contains a clerical error or misstatement of fact, a corrected deed shall be issued by the tax collector and recorded with the county recorder without charge. The new deed shall contain a statement of reasons for its issuance and, as far as practical, shall be the same as the original except where corrected. The tax collector shall send a conformed copy of the new deed to the Controller. 3805. In addition to the usual provisions of a deed conveying real property, the deed shall specify: (a) That the real property was subject to a power of sale pursuant to Section 3691 for nonpayment of taxes which had been legally levied and were a lien on the property. (b) The name of the purchaser. (c) Any condition deemed necessary to effect compliance with the agreement, including, but not limited to, a condition that the real property be used by the taxing agency or nonprofit organization for the public use specified in the agreement. 3806. Except as against actual fraud, the deed is conclusive evidence of compliance with this article and otherwise has the same effect as evidence and as a conveyance as a deed to a private purchaser after sale of tax-deeded property under Chapter 7 (commencing with Section 3691) of this part. When the property is sold under an agreement providing for the resale of the property by the purchasing agent the deed given upon resale shall have the same effect. 3808. Any payment required by an agreement under this chapter shall be made to the county tax collector and, except as provided for in Section 3791.5, shall be deposited, like tax collections, in the delinquent tax sale trust fund and shall be distributed under Chapter 1.3 (commencing with Section 4671) of Part 8.






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3809. A proceeding based on alleged invalidity or irregularity of any agreement or deed executed under this article can only be commenced within one year after the execution of the instrument. Sections 351 to 358, inclusive, of the Code of Civil Procedure do not apply to the time within which a proceeding may be brought under this section. 3810. A defense or cross-complaint based on the alleged invalidity or irregularity of any agreement or deed executed under this article can only be maintained in a proceeding commenced within a year after the execution of the instrument. 3811. On execution of the deed to the taxing agency or nonprofit organization, the tax collector shall report the following to the Controller, the assessor, and the auditor: (a) The name of the purchaser. (b) The effective date of the sale and the date of the transfer of the deed to the taxing agency or nonprofit organization. (c) The amount for which the property was sold. (d) The description of the property conveyed. 3813. The tax collector shall note the fact and date of a sale under this chapter on the margin of each delinquent and current roll on which the property appears, opposite the property sold. Any charges against the collector having custody of the delinquent and current rolls shall be reduced accordingly. 3841. If any property, whether subject to a power of sale pursuant to Section 3691 or not, is deeded for taxes to two or more taxing agencies, any one or more of them may sell and convey its or their interest in all or any portion of the property to any one or more of them for any agreed price and terms. Any one of them may, by itself or with another taxing agency, make the purchase.

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